Instead of making a permanent contribution, some donors may want to provide FLAG with funds for a specific or indefinite period of time. Such contributions to FLAG are loans and, therefore, not tax deductible.
Some philanthropic foundations make Program Related Investments (PRIs) as a way to achieve both their charitable and investment objectives. (PRIs are considered charitable expenditures that count toward the IRS requirement that philanthropies use at least 5% of their endowments for charitable purposes each year.) Because the FLAG doesn't charge interest, however, it can't pay interest either. So, amounts received for FLAG to use on behalf of a donor are considered Program Related Grants rather than PRIs.
FLAG will accept Program Related Grants, whether or not they need to be repaid, on terms mutually agreed upon by FLAG and the donor. A grant may be used to fund a specific FLAG loan or loan program, provided that FLAG can determine that the transactions involved will not constitute a distribution from a donor advised fund to provide a prohibited benefit that could result in a tax liability for the FLAG and other parties.
Some philanthropic foundations make Program Related Investments (PRIs) as a way to achieve both their charitable and investment objectives. (PRIs are considered charitable expenditures that count toward the IRS requirement that philanthropies use at least 5% of their endowments for charitable purposes each year.) Because the FLAG doesn't charge interest, however, it can't pay interest either. So, amounts received for FLAG to use on behalf of a donor are considered Program Related Grants rather than PRIs.
FLAG will accept Program Related Grants, whether or not they need to be repaid, on terms mutually agreed upon by FLAG and the donor. A grant may be used to fund a specific FLAG loan or loan program, provided that FLAG can determine that the transactions involved will not constitute a distribution from a donor advised fund to provide a prohibited benefit that could result in a tax liability for the FLAG and other parties.